An employee is starting a job with an annnual(yearly) salary of $40,000. The employee's annual salary will increase by 3% at the end of each year with the company.

Question

What will the employee's annual salary, in dollars, be at the end of the second year with the company?
(1 point)

A. $1200

B. $41,200

C. $42,436

D. $1236

Answer 1

B. $41,200

Explanation:
At the end of the first year, the employee's salary will be $40,000 + 3% of $40,000 = $40,000 + $1,200 = $41,200.
At the end of the second year, the employee's salary will be $41,200 + 3% of $41,200 = $41,200 + $1,236 = $42,436.